Europe August adipic acid contracts settle up in most cases

05 September 2012 23:59  [Source: ICIS news]

By Renee Lawrence

LONDON (ICIS)--The majority of European August adipic acid (ADA) market players have settled their August contract business and in most cases players have agreed to a price increase from July, sources said on Wednesday.

ADA suppliers are adamant that they need to recoup the sharp rise in the cost of their benzene feedstock which registered a three-digit increase of €108/tonne in August over July.

Some buyers have agreed to a rollover versus July while most have settled with an average increase ranging between €20-50/tonne ($25-63/tonne), sources said.

The August contract price settled at €1,475-1,575/tonne FD (free delivered) NWE (northwest Europe), registering a €25/tonne increase versus July.

Some ADA suppliers said they intend to seek another increase in September to prevent a further dent on their margins.

One supplier said it intends to ask for a €50/tonne increase this month to claw back some of the margins they lost in August as they didn't manage to pass their full benzene increase.

Still, some buyers said they want the suppliers to pass down the decrease in benzene costs this month. The European benzene contract for September was agreed late last week at €1,026/tonne FOB (free on board) NWE (northwest Europe), down €35/tonne from the previous month.

One buyer in northern Europe said it had already settled September business, agreeing to a €20/tonne increase versus August.

($1 = €0.80)

By: Staff Reporter
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